Canada Emergency Rent Subsidy new
The COVID-19 pandemic has impacted Canadian businesses in many ways. One of the biggest impacts has been the cost of rent and property taxes during this time.
The Government of Canada has come out with the Canada Emergency Rent Subsidy (CERS) which will help to reduce these costs for Canadian businesses, non-profit organizations, and charities. CERS replaces CECRA, which ended in September, and had offered to cover rent up to 75% (with the requirement that landlords reduce their rent by 25%).
CERS allows qualified tenants to receive the monthly benefit without the requirement for landlords to reduce the rent price, eliminating the challenges caused during CECRA. The government will now work with tenants directly.
To qualify, your business must meet the following requirements:
- It is a Canadian business
- Rent or mortgage are being paid
- Revenue must have dropped for the referenced period compared to a previous period
- No minimum drop in revenue required as benefit received depends on drop %
Eligible organizations can now apply for Period 1 (September 27th - October 24th). This program is set to last until June 2021.
A maximum of $75,000 per business location and a total of $300,000 for all locations can be claimed per period. The rent subsidy will allow you to claim up to 65% of rent costs as long as your revenue has dropped by at least 70%. The smaller the drop in revenue, the smaller the subsidy % received. In addition, businesses who have been temporarily shut down due to public health order will receive up to an extra 25% known as a top up.
If you have any questions, would like to apply for the benefit, or for any of your accounting and taxation needs, contact us at infR@galaxytax.com or call us at 416-708-6250.
The Canada Emergency Wage Subsidy (CEWS) is a government funded wage subsidy offered to qualifying employers to assist in the cost of payroll. The purpose of CEWS is to promote the employment of individuals during the pandemic and increase the employment rate in Ontario, the rate that continues to stagger due to COVID-19. The subsidy will cover a certain % of payroll costs depending on how much a business’s revenue has declined due to COVID-19. For calculating your wage subsidy, we offer free limited time consultation! https://www.galaxytax.com/ Click here for more details
The Canadian Emergency Response Benefit (CERB) has now come to an end. Note that if qualified, you still can apply to receive the benefit for period 7 (August 30 to September 26, 2020) if you haven’t already.There are talks of various benefits to replace CERB such as the new CRB (Canada Recovery Benefit) however these Bills are still in the process to be passed. Click here for more details
The Canadian Commercial Rent Assistance (CECRA) allowed small business owners the chance to receive help in paying for their business properties throughout April to September.. The assistance covered 50% of rent, as long as the property owner covered 25%. This had left the business owner with only 25% of the rental bill each month. CECRA has now ended, and there are no benefits appearing to replace this one. Click here for more details
The Canadian Emergency Business Account (CEBA) with the help of the government and banks/credit unions has allowed for small businesses and not-for-profit organizations to receive loans of up to $40,000 interest free. This will help to cover the operating costs of the businesses. If a business can pay back their loan by the end of 2022, they could receive loan forgiveness of up to 25%. As of right now the application deadline to apply for the loan ends October 31, 2020. For a list to see if your business qualifies, Click here for more details
The Canada Recovery Benefit (CRB) will provide self-employed and employed individuals the chance to earn a benefit for those who do not qualify for EI. You must apply every two weeks and could earn $1000 every two weeks if qualified. Your income must have decreased by at least 50% compared to before COVID-19 and you must have made at least $5000 in 2019, 2020, or a 12-month period. Applications open October 12, 2020 and are set to end September 2021. For more information on if you qualify, Click here for more details
The Canada Recovery Sickness Benefit (CRSB) allows those who were unable to work due to COVID-19 due to self-isolation, health conditions, etc. could earn up to $500 per week for up to two weeks as long as they work less than 50% of a normal work week during this time. Individuals who qualify for over one week must apply again after the first week. Applications open October 5, 2020 and continue until September 2021. Note that you can only apply for two weeks between the application dates. Click here for more details
If you own a small business with 2-9 employees and are in the retail, food services, repair & maintenance, OR personal and laundry services industry, you could receive up to $1,000 as part of Covid-19 grants. These grants will be offered with the purpose of helping businesses with costs for various PPE. Contact us for more information
If your business was required to close or restrict services, due to COVID, you may be eligible for rebates with regards to property taxes and energy costs during the time your business is affected. Contact us by email or phone to see if your business qualifieshttps://www.ontario.ca/page/businesses-get-help-covid-19-costs
Ontario's Main Street Relief Grant
CEWS (Canada Emergency Wage Subsidy)
CEBA (Canada Emergency Business Account)
CERS (Canada Emergency Rent Subsidy)
CECRA (Canada Emergency Commercial Rent Assistance)